• Circle and Polymarket move settlement to native USDC to reduce risk and improve efficiency across prediction market trading.
• Polymarket drops bridged stablecoins as native USDC enables direct issuance redemption and simpler onchain settlement.
• Native USDC adoption grows as prediction markets attract exchanges and regulators increase focus on market structure.

Circle Internet Group has partnered with Polymarket to move settlement infrastructure to native USDC. The shift replaces bridged stablecoin collateral currently used for trading on the platform. Polymarket presently relies on bridged USDC on the Polygon network. Over the next few months, the platform will complete the transition to Circle-issued native USDC. The change places collateral under direct issuer-backed settlement.

Native USDC is issued and redeemed by Circle’s regulated entities. It supports one-for-one redemption for US dollars without bridge dependencies. As a result, Polymarket removes reliance on cross-chain representations. The new structure improves capital efficiency across trading activity. It also simplifies settlement operations as platform participation grows.

Polymarket Moves Away From Bridged Collateral

Cross-chain bridges move assets by locking tokens on one blockchain. They then issue matching representations on another network. However, these systems introduce security and trust trade-offs. They also increase technical complexity during settlement. Single-chain collateral removes those additional layers.

Polymarket is simplifying collateral management by adopting native USDC. The platform now relies on assets issued and redeemed directly by Circle. Consequently, settlement becomes more predictable for traders. The approach also reduces exposure to bridge-related risks. This shift reflects a broader move toward issuer-native stablecoins.

Polymarket operates as an onchain prediction market for real-world events. Users trade outcome-based contracts using stablecoins as collateral. Markets cover cryptocurrency prices, political outcomes, and other events. Settlement integrity remains critical to platform reliability. Stablecoin choice plays a central operational role.

USDC Strengthens Its Position in Onchain Markets

USDC ranks as the second-largest stablecoin by market capitalization. It trails only Tether in total supply. Data from Defillama places USDC near seventy billion dollars in market value. Adoption continues to expand across blockchain platforms. Regulated issuance remains a key driver of usage.

Circle has focused on expanding native USDC integrations. Direct issuance supports clearer compliance frameworks. Therefore, platforms increasingly prefer native stablecoins over bridged alternatives. This preference reflects risk management priorities. Settlement transparency also benefits from issuer-backed redemption.

The Polymarket integration expands USDC use in prediction markets. It signals rising infrastructure standards within the sector. Stablecoin selection now affects platform credibility. Market participants continue to prioritize settlement reliability. Native issuance supports that demand.

Prediction Markets Attract Major Platforms

Prediction markets continue to draw interest from crypto firms. While Polymarket and Kalshi remain leaders, competition is increasing. In December, Gemini launched Gemini Predictions after regulatory approval. The service became available across all fifty US states. Exchange involvement continues to expand.

Soon after, Coinbase announced a prediction market partnership with Kalshi. On Tuesday, Crypto.com launched OG as a standalone platform. The service operates through its North American derivatives unit. These launches reflect growing institutional interest. Event-based trading is now attracting wider adoption.